good morning. thank you for joining us on this tuesday. i'm pam cook. >> good morning. i'm dave clark. let's check your weather and traffic. here is steve. >> reporter: low clouds. low fog greet us on this tuesday morning. once that burns off it will be sunny and a little warmer. by the coast too much in the way of fog and low clouds. if we lose the higher clouds we had yesterday, sunny. sal has an update open your on your traffic. >> reporter: there is a crash from car that ran into a tree. this morning's commute on 80 westbound at the toll plaza

looks good. let's go back to dave and pam. we are following breaking developments out of iran where the attorney for sarah shourd says she's been in the process of being released. >> reporter: it has been an agonizing wait for her family, a roller coaster weekend leading up to this moment. the bottom line is that sarah's attorney says she is being released. these are pictures of shourd that we got from the website free the hikers.org. he's been in prison for much of a year, most of it in solitary confinement. iran's government released her for health reasons but said she would have to post 500,000-dollar bail. at this point it's unclear if

that's been paid. her fiancee and her friend are still in custody. they were picked up after crossing into iran. the government has accused them of being spies. we're working right now to get reaction from the state department, local members of congress and the hiker's families and we'll stay on top of it here for you at ktvu. time now just turning 6:03. we're also following new developments in last week's deadly explosion and fire in san bruno. in just a couple of hours the coroner will announce the fatality figure. the current death toll stands at four. three people are listed as messing. also pg&e will spend up to $100 million to help the fire

victims. where will that money come from? jade hernandez is in san bruno with the details of the very controversial proposal. good morning. >> reporter: we are live in front of the neighborhood which was affected. pg&e says the cost is covered but what happens if the costs exceeds what is covered by insurance? will customers have to pay? the first of many meetings will be help today. they will weigh whether or not their customers should pay for cost incurred by catastrophic fires. a new proposal, the wildfire expense account would define a wildfire by an uncontrolled fire that is larger than an acre and

destroys houses and buildings. the san diego gas and electric company first introduced this proposal in august 2009. opponents say the san bruno explosion and fire would fit within the wildfire definition. it's not clear if the plan would trigger a rate increase. an attorney in the puc staff division said the proposal could allow you to charge customers for the cost of pass fires including the san bruno fire. the meeting is today in france. we have contacted pg&e but we have been told an expert won't be available until later this morning. >> pg&e sent crews out to inspect all of its major natural

gas lines. they ordered the inspections after last week's explosion. pg&e says it will spend as z much as 100 million dollars to help rebuild that san bruno neighborhood. chris johns made that pledge yesterday at a san bruno fire house. he says pg&e will spend the next few days working to determine how much money each household will receive. the first checks are set to go out later this week. >> no strings attached. it's theirs to use in any way shape or form that they want. >> we're living in a hotel out of a bag. i think they will come through. i think we can get all the neighbors together and make them come through. >> people living in red tagged homes will receive $50,000.

fire victims in yellow tagged homes will get 25,000 and a green tag means a 15,000-dollar check. i'm concerned about making sure there's some means to do automatic valves on closings. in this case it was a manual shut off that had to take place and it was easily an hour after the gas exploded. >> pg&e says there's a simple explain for why workers couldn't shut off the gas line right awas raised. those huge flames and very intense meet made it impossible to get close enough. right now it's 6:07.

want to go back and check in on the toll plaza. how does it look? >> reporter: it's still looking okay. westbound and eastbound 80 looking pretty good. westbound traffic is moving along pretty welcoming into san francisco. we've had a pretty nice commute headed into the city. no problems on the bridge and the road work is gone. also the traffic is going to be okay if you are driving on interstate 880 here. traffic is moving along well. our cameras pointing south. this is heading towards stanley stanley -- lettuce move along and take a look at disagree stat 280 right through downtown san jose. that traffic is moving along very nicely. here is steve. >> reporter: a good morning to you all. we have some low clouds. there's nothing new there. the higher clouds from yesterday are gone. you have the higher clouds that

we can't burn off. there's a possibility of rain on saturday. it's tough to warm up when you have this much low clouds. it should be 71 this time of year.

it will be rain for northern california. it will be a little warmer. low clouds, sunny and mild. cool for some. mild for others. more of the same wednesday. a little warmer thursday. there's your cloudy on saturday with rain to the north. 6:10 is the time right now. the house speaker nancy pelosi worried about her job? >> we spend our time and energy on winning. >> what a loss for democrats in november could mean for pelosi's political future. also a new clue has emerged as the investigation into the deadly explosion in san bruno shifts to a new phase.

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inside that crater used to be a 30-inch gas pipeline. it's not there this morning

because it's headed to washington, d.c. for testing. yesterday a 28-foot piece of pipe and two additional ten foot chunks that were chopped off from both ends of the explosion site were loaded onto trucks to be taken to the capitol for testing. investigators are looking to see if fatigue, corrosion or physical damage played a part in this. they are also looking at a break from the pipe. it happened in a spot where the pipe curved. at that spot were several welds. that's where crews have welded together several smaller pieces of pipe. >> one of those welds was the clean break end of the pipe where you could see a very distinct clean break of the pipe at the welds. the other end was torn and shredded.

>> reporter: the investigation is ongoing while the grieving continues. you have the victims who have yet to get even close to the seat of their homes. those who live in the red tag home did get a bus tour yesterday. that's really as close as they could still get. those who loved ones died are left to mourn the senseless tragedy. the elderly woman believed to be an 81-year-old woman relatives say her daughters and son-in-law who tried to rescue her are still in the hospital. they believe torres made it to her front porch but couldn't go any further. >> she sat down on the steps just like take a breather because the smoke and fire and everything and the fire just engulfed her. >> reporter: back out live here at the scene of glen view drive they're still not letting anyone get close to that crater. we are about half a block up from that area where the road is

still closed. all around us there are homes that people have been allowed into. this investigation still continuing. ntsb is not only focused on the pipe but visiting the pipeline monitoring control room. they have also done alcohol and drug testing to all involve pg&e workers and they also started gathering and will spend the next several days and weeks and months pouring through memos and documes. a big part of that continues to be this report or these reports they have gotten that someone smelled gas. pg&e still say they haven't been able to find anyone who say they smelled gas before this happened. they are look for those people.

this investigation still moves forward. >> make sure you stay right here with us at ktvu news for the latest in all of this. you can get updates any time by going to our channel 2 website, ktvu.com. with the november election only seven weeks away some political analysts are speculating about the future of nancy pelosi if democrats were to lose control of the house of representatives. current polls show that is possible. republicans could win enough seats in november to retake control of the house. publicly pelosi says the democrats are not even talking about that possibility. >> i'm not yielding one grain of sand. i continue have a conversation based on democrats not winning the house. >> if republicans do take control of the house in november pelosi would no longer be speaker. it remains to be seen if she would remain in power as minority leader. democratic candidate for governor jerry brown is apologizing for a comment he made about former president bill

clinton. brown was criticizing a campaign ad that meg whitman, his opponent in the race, is airing. it features footage of bill clinton criticizing jerry brown when the two men were vying for the presidential nomination. in attacking that ad jerry brown made a reference to clinton's sex scandal. he questioned whether bill clinton told the truth. >> bill clinton was an excellent president. it was wrong of me to make joke about an incident from many, many years ago and i'm sorry for that. >> in that footage from 1992 bill clinton quotes a cnn report saying jerry brown raised taxes as governor of california. it's been discovered that the cnn report was inaccurate. brown campaign has called on meg whitman to stop running that

commercial but they have refused. the sick out is in response to recent changes including new requirements to work schedules, a new fee to parking and changes to the rules for calling in sick. sal has breaking news. a water rescue is happening now. >> reporter: that's right. we've heard of a vessel this morning in richmond that was taking on water. this is a picture of richmond bridge. it's somewhere in the richmond bay. coast guard is out there looking. we have news chopper 2 on the way to see if this is still going on. we'll let you know more as soon as we know.

traffic looks good. westbound bay bridge traffic also looking good getting into san francisco. this morning's drive looks good right past the coliseum. 6:19 here. steve. >> reporter: we do have low clouds. it's kind of on the cool side with some 40s across the board and low 50s. there's definitely a chill. we lose the higher clouds yesterday. that kind of prevented it. today is more of a typical summer day. the higher clouds out of the way. mild for some. still on the cool side for others. the bay 60s to 70. upper 70s, low 80s. there are some low 50s even on the peninsula. system to your left will be

playing into your forecast. at 6:35 we'll have our rain checking which shows rain moving into the north by late friday into saturday. low clouds today, sunny and mild. temperatures coming up just a little bit. 50s, 60s and low 70s closer to the coast and bay. pam and dave. new numbers in this morning show retail sales rose by the largest amount in five months. the report shows the numbers for august are up twice as much as economists predicted. it's giving amandaests some hope for the very important holiday shopping season. wild flucuations on wall street are making investors leery of buying stocks. 61% surveyed says the market's

recent volatility has made them less confident about buying and selling stocks. mutual funds are the indicated favorite way to build wealth overall with 62% calling them a good investment. numbers showing a drop in violent crimes across the u.s. we'll tell you ha is behind the downwards trend. what investigators discovered into a hotel room that may have put people's money and identities at risk.

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steve adelson was lying on a beach. his girlfriend said the pack back had sunscreen and beer inside of it. there's no arrests made yet. nation's crime rate dropped 5% last year and that continues a 20 year trend. other violent crimes including rains, robberies and assaults are also down by more than a third. the credit is going to better policing and more arrests. investigators have broken up an identity theft ring in the north bay. they say the scheme put hundreds of people's finances at risk. investigators show us here some of the $1600 in counterfeit cash

that was seized. novato police busted the ring during a paroleee check at a motel. >> we have printers, we have multiple laptops, laptops. >> investigators say they found a list with the credit card information of more than 200 people. also recovered stolen mail from mailboxes. pg&e is considering having its customers help pay for disasters like the one in san bruno. we'll tell you what's happening

today. we'll see how wall street responds to retail sales. pam will have all the numbers.

there's word of a possibility that someone may be in theking for someone in the water now. it's unclear if they have

already rescued someone. this looks like a police vessel. the coast guard is also there. this is near the refineries. again, this is water rescue. way just found out about it within the last half hour. we'll let you know more as soon as we find out. let's go back to dave and pam. we're following new developments in last week's deadly explosion and fire. federal investigators are getting a close look at a weld on a curved section of the pipe

that blew up last thursday night. in a couple of hours the coroner will give us an update on the fatality figure. the death toll stands at four. three people are missing. also pg&e will spend up to 100 million-dollars to help the fire victims, but where will the money come from? jades has the details of what they are thinking about. >> reporter: i just got off the phone with a spokesperson. he said today's discussion is just formalizing what the utility already has in place. today in san francisco the state public utilities commission will weigh whether or not their customers should pay for costs incurred by catastrophic fires. under current rules utilities can seek a rate increase in the cost of a disa sore arm exceeds their coverage. they why they say this proposal

will be a formal vote. currently there is a check and balance with the rate increase. utilities commission can veto the request and force utility share holders to pay the bill. san diego gas and electric company first introduced the proposal in august 2009 after the 2007 fires which caused more than 1 billion-dollar in damage. opponents say the san bruno explosion and fire would fit into that definition. at this point it's not clear if this would trigger a rate increase to help pay for last week's gas line explosion. an attorney in the puc staff division said it could allow utilities to charge customers for the cost of past fires and

that's part of the problem today. this meeting is expected to be held at 1:30 in advance. we'll have more on this coming up at top of hour. jade hernandez, back to you in the studio. a former chp officer accused in a murder for hire plot is expected to return to court this morning. he's being held without bail. he was arrested? july and prosecutors have charged him with solicitation to commit murder but they aren't identifying his alleged target. salgado facing several drug related charges. a woman who drowned in discovery bay over the weekend has been identified. on saturday night 45-year-old virginia mirney was with her husband friend ons patio boat docked in back of her home.

hen the friends left her husband says he went to bed leaving her each household loan on the boat. when he woke up sunday morning he found his wife in the water. the sheriff's office says it each household peers the group had been drinking but investigators don't know if that contributed to her death. attorney for the man accused of killing bay area journalist chaunce will be in court. defense attorneys claim intense media coverage prevents the defendants from getting a fair trial in alameda county. 6:35 is the time. let's go back to sal who is following this boat, possibly a person in the water. >> reporter: we have new information.

some sort of a boat here that was in trouble. news chopper 2 is showing the pictures of the boat. four people according to coast guard were transported to local hospitals. we don't know the extent of their injuries. this just happened about 20 minutes ago. they got the people off the boat and took them to shore and from there they were transported to the hospital. this is the boat that was in question and it's still is there in the water. there's no one on it anymore. we're not sure if anyone was in the water. we did hear unconfirmed reports that someone was overboard. we cannot confirm that at this point. we know for sure that the coast guard told us that four people were taken to the emergency medical centers nearby after this boating accident. that's news chopper 2 right there. let's move along and take a look at 880 north and southbound. this commute looks pretty good

here. it's getting a little crowded at the toll plaza. this morning's commute on the peninsula looks okay. let's go do steve. >> reporter: low clouds. a lot of 40s and 50s. we have a cold front looking like it wasn'ts to make an appearance by the weekend. we start off with really chilly readings. it will be slightly warmer today. low overcast. the higher clouds from yesterday are gone. sunny today after the fog burns off. clouds increase friday. we get a little break but just to the far left of your screen that's the leading edge of the system that we're tackle as we head toward friday and saturday. yesterday we cooled off big

time. 72 in napa. 62 san francisco. only one warmer today. walnut creek was a cool 74. danville at 49. there's definitely a little bite to the morning air. one system moves out, high pressure comes in. this is the system we're watching. it's deepening and starts to move toward us by friday. we are look at for the next couple of days ask weak high pressure coming in. that will give us a bit of a warm up. inland areas will go into the upper 70s. low and mid-80s. real quick on the rain forecast i want to show you this really fast. i'll get to friday and you'll start to see it. it went too quick. imwork on that. a little breezy at times.

50s, 60s by the beaches. the five day, a little warmer inland on thursday. time now 6:38. the san francisco board of supervisors today will make a decision about a controversial new alcohol fee after last week's vote was postponed. the meeting was canceled minutes after it started because the required notice of meeting was not posted in the newspaper. distributers will be charged fees on every gallon of beer, wine and hard liquor they sell. the money would help the city pay for health care costs.

we are continuing to get reports this morning about the release of uc berkley graduate sarah shourd from that iranian prison. what they are saying about her 500,000-dollar bail. good morning. this boat has flipped over here in the water. it's the subject of water rescue from four people had to be taken to the local hospitals. more on this developing news straight ahead.

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good morning to you. welcome back. we're still hearing reports and following reports this morning about the release of sarah shourd from an iranian prison. she was released on $500,000 bail but did not specify if the money has been raised. the family was having trouble raising the money. federal investigators are taking a closer look at a welds on a curved section of a pipe

that blew up. we have more information about the people involved in a coast guard rescue. let's go back to sal on this developing situation. we news chopper 2 does have pictures of this boat. the boat ran into trouble when it ran into rocks. the coast guard reports that four people were on the boat and three -- one person was injured and three others were not injured when the boat ran up against some rocks near the richmond shoreline. they did dispatch a rescue boat at 5:50 a.m. one person had fallen overboard and the rescue team was able to pull that person out of water

and add minister cpr. the person was taken to a hospital. the other people were not injured. they were taken off the boat. one person in very serious condition was taken to the hospital. the other three people on the boat were not injured. a total of four people were on this boat. as you can see it's flipped over. we have a crew on the way. we'll let you know more about this developing news in a few moments. lets go back to the desk. charges have been dropped against the mother whose 2-year-old daughter was found wandering the streets back in june. police say the little girl was found barefoot and screaming a mile from her home. the 23-year-old was due to go on trial this friday on child endangerment charges but prosecutors say some new information has come to light to suggest the child may have been taken from the home by someone

associated with rendon's boyfriend. the trial of a man accused of a deadly hit and run is on hold right now. he cannot help in his own defense because of his current mental illness. he's accused of killing a pedestrian on august 29th, 2006. he's also accused of hitting 18 people in san francisco that say day but he was found not guilty by reason of insanity. oakland police are searching for man who robbed three convenient stores in one night at gun point. they released this entrance video. take a look. it's pretty clear. investigators say the suspects entered a 7-eleven store on 23rd avenue shortly after 4:00 a.m. on september 4th and demanded cash. police say he robbed two other 7-eleven stores. no one was hurt in those robberies. a 2500-dollar reward is now

being offered. time now 6:46. team of health workers from an oakland church have been leased on bail from a jail. four members of the allen temple aids ministry were arrested friday charged with distributing medicine without the proper medical licensing. the church is defending medical workers. they have been ordered to return to court in two weeks.

it's feared an infecteous disease nightmare may be unfolding. it may have been made resistant to all antis by an adaptable new gene is popping up. it all received people who received medical care in india where the problem is much more wide spread. the popular sandwich shop in san francisco's castro district has served its last sub. >> hopefully we'll be able to come back one day. hopefully i can repay san francisco for what they have done for me and be able to come back and bring all of this back here. >> the restaurant is ike's place. it closed its doors at midnight. neighbors that didn't like the noise come frog the customers won their campaign to get the restaurant to move. about a hundred people you see

them in these pictures here showed up last night to say fair well to the sandwich shop. they have recently opened on the stanford campus. there's another location in redwood city. 6:48 is the time. we're ling back over to sal. >> reporter: we're checking in on the day bridge toll plaza. we're doing highway 4. we're going to do highway 4 first. that traffic is pretty slow coming up to the willow pass gray with no major problems. now the toll plaza is backed up for about a 12 minute delay. that traffic is moving well. regards that boat rescue, we'll have more information. we're getting some new information about a rescue that

happened in the waters off richmond. we have more information coming up shortly. here is steve. >> reporter: you can see there's a lot of low clouds and fog out there. there's plenty to go around. it will continue do be with us nights and mornings. it's going to be on the increase over the next couple of days especially as we get toward friday because the system that's far left to your screen there inlies increasing clouds. yesterday we had the higher clouds come by. they're gone. we'll have more sunshine today. this system is the one we're keeping an eye on. it's a little bit warmer especially away from the coast. 62 in san francisco. this time of year should be 71 on the high side so not even close. 62 is 1 degree warmer than yesterday. 52 livemore con ford. it is a little cold out there

for some. i'm seen some upper 40s in renton county. sacramento 52 degrees. the system we're watching is right there. it's starting to tap into more moisture. it's going to be rainer for northern california. i don't usually like to show these areas cool far out. by friday morning you might see some. there's friday night. to the north it will be heavier amounts. low clouds, sunny and mild today. a little breezy at times. with that system deepen inleads areas will warm up. there's the increasing clouds friday. thank you, steve.

6:51 is the time. let's go right to wall street for the numbers. despite a pretty good retail sales report the numbers are down. dow jones off about 30 points. of note also this morning one retailer best buy reports net income of 60% beating analysts expectations but again numbers are down today. toyota says the all electric suv it's developing will be introduced at the los angeles auto show in november. it will be the only compact electric suv on the market. >> wow. there's some mixed news. it's about california schools. we'll tell you how students made improvements and where there's still some room to grow.

coming up, we're following the breaking news. we'll have live coverage on where she is now and we'll hear reaction from one of california senators who worked to make this happen. we'll also have full coverage of this morning's developments in the san bruno explosion including critical clues that are being discovered. we'll learn what's happening at

the port of oakland that will pump about $85 million into the economy. how a blood testing company played a key role in a fake id role. those stories and more coming up. back to you on the morning news. time now 6:55. to mississippi, a cat is demonstrating a mothering skill. she's mothering a baby squirrel. it has fallen out of its nest. the cat's owner couldn't climb the tree to put it back so she put the squirrel in with the kittens. the cat and the squirrels just took to each other immediately. that squirrel is even learned how to purr like a cat. the owners say they plan to keep the squirrel as a pet as well. >> if you're a mom my, you're a mommy. it didn't matter. let's check in with sal.

>> reporter: we have traffic at the bay bridge. the busiest time would be about here to about 8:15. before and afterit usually starts to settle down or not as bad. right now as it peaks southbound 101 as you drive down to the 580 interchange that traffic is getting busy. now let's go to steve. >> reporter: thank you, sir. lots of low clouds and fog but at least the high r clouds from yesterday has moved off. that allows the sun the burn off the fog a little sooner. around the bay 60s and 70s. pay and dave. the annual progress report on california schools shows students have made progress but officials say there's still room for improvement. 40% of all public schools meet or exceeds the statewide target of 800 on the academic performance index. that's up 4% from last year. however, the state schools say more needs to be done do close

the achieverment gaps between the ethnic groups. new information continues to come into our news room here about the coast guard rescue and the waters off of richmond. we have chopper 2 and our reporter is with two of the victims. we'll hear from them up next. stay with us.